After a Massive Shock, Advertisers Get Back to Business. Maybe.
Data from the IAB shows that the decline in digital ad spending is slowing. While that doesn’t mean the pain is over, it’s important to note the change in trend—especially compared to traditional media spending, which, according to the IAB, continues to worsen
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—because it implies that marketers are starting to get in the game and make strategic decisions after watching the pandemic unfold. While the number of buyers pausing campaigns has increased since the last survey, the IAB notes that “overwhelmingly, those who are now pausing their spend had not yet decided whether or not to do so one month ago,” which means we could be seeing the peak of the pause. Most importantly, the amount of buyers making actual cuts in digital spending has started to drop, which means the pace of the contraction is slowing as marketers start to make more targeted decisions.
This doesn't mean normalcy is close at hand, but it underscores that most marketers and brands are always looking for the right way to talk to audiences. The pandemic ran the world economy into a brick wall with unprecedented speed. The IAB’s survey data implies that marketers may believe the surprises are behind us and are starting to recalibrate. Whether they're right or not remains to be seen.
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Words by
CREATIVE STRATEGY DIRECTOR
Michael Shane